The objective of a wealth management service is to address the financial needs of affluent clients by combining financial services. In a consultative process, the advisor gathers information about the client’s particular situation and wants, then tailors a customized strategy using a variety of financial products and services. As part of wealth management, clients may receive a wide range of services including investment advice, estate planning, accounting, retirement and tax planning.
An Overview of Wealth Management
Asset management is more than just investment advice. It can include all aspects of a person’s financial life. High net worth individuals may benefit more from an integrated approach instead of attempting to integrate advice and products from different professionals. An asset manager coordinates these services, along with developing a strategy to meet clients’ current and future needs, such as will and trust services or succession planning for business owners.
While many wealth managers offer services across the financial spectrum, some specialize in particular fields, such as cross-border wealth management. Whether or not a wealth manager can provide these services will depend on his or her expertise or his or her business focus.
A wealth management advisor may have to coordinate input from outside financial experts and the client’s own service professionals (for instance, an attorney or accountant) to craft the optimal strategy. Additionally, some wealth managers offer banking services or advice on charitable activities.
The Wealth Management Business Structure and Wealth managers:
A wealth manager may work for a small business or a large corporation, typically one associated with the financial sector. The title of a wealth manager may depend on the organization. An individual client may receive services from a single designated wealth manager or may have access to members of a specified wealth management team.
Wealth managers play a role part. As a whole package of services, wealth management advisors combine financial and accounting services, tax services, investment advice, legal or estate planning and retirement planning to build and manage wealth for affluent clients. A professional advisor’s credentials can demonstrate which designation and training are appropriate for your situation. The top three advisor credentials are Certified Financial Planner, Chartered Financial Analyst and Personal Financial Specialist. Websites for professional certification organizations let you check whether a member is in good standing or if he or she has been disciplined or complained about.
FINRA provides a tool that explains professional designations. This tool also shows if the issuing organization requires continuing education if complaints are accepted and if you can check who holds the credentials through the issuing organization. Based on the client’s financial situation, goals and risk tolerance, the wealth manager develops a plan to maintain and increase the client’s wealth.
To protect the client’s wealth, every part of the client’s financial picture must be coordinated, whether it is tax planning or estate planning. This may coincide with financial projections and retirement planning. The manager meets regularly with clients for updates, reviews and rebalancing of the financial portfolio after developing the original plan. As part of the evaluation process, they may look into whether additional services are needed with the ultimate goal of remaining in the client’s service all the time.
